Expert: Shirley McAllister, CPP, PHR - 3/6/2008

Question
I am a store manager in Tennessee. The corporation I work for has 5 additional stores. Each quarter, I receive a 10% bonus based on my individual store's profits. The bonus is paid the following quarter and is charged back to me as payroll, thus my profits are reduced each quarter by the previous quarters bonus. In other words, I am losing 10% of the previous quarter's bonus due to this accounting method. Is this a proper accounting technique? Should the bonus be charged to corporate instead of my store?

Answer
This is done correctly as it is based on the profits for your individual store.
I am sure that the other 5 stores are handled in the same manner.
It should have been explained to you upon hiring during your orientations period.  

If you have an employment contract check and see how it is written. If you are not happy with it than speak to Corporate about it and see if you can work out a compromise to make both of you happy. At least they can explain to you why it is handled in the manner that it is.

Shirley